Lately, the US was experiencing problems with keeping its upward momentum, but the greenback regained its strength during this week during which it was one of strongest currencies on the Forex market. The major reason for the strength was the minutes of the latest Federal Reserve’s policy minutes.
The dollar has started the week a bit weak but quickly recovered and continued to move up. The currency received a significant boost the Fed minutes and retained its strength by the weekend.
Several central banks were making policy decisions this week but neither of them made any changes to their policies.
The yen attempted to rally after it was revealed that the Bank of Japan voting members had a dissenter in their ranks who thought that monetary stimulus should be reduced. While it allowed a short-term rally of the Japanese currency against the dollar, it did not help the yen much in the long run.
The pound fell after the Bank of England made its decision, and the sterling hit the lowest level since 2010 versus the US currency on Friday.
The only currency that profited from the policy announcement of its respective central bank was the Australian dollar. In fact, the Aussie was the only major currency that managed to gain on the greenback over the trading week.
EUR/USD dropped from 1.1003 to 1.0600 over the week. GBP/USD sank from 1.4916 to 1.4633. USD/JPY climbed from 118.83 to 120.22. Meanwhile, AUD/USD edged higher from 0.7637 to 0.7678 during the trading week.
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